Cisco Systems is scheduled to report fiscal fourth-quarter earnings on Wednesday after the market closes, and Wall Street expects that the technology company's revenue growth remained strong on sustained artificial-intelligence demand.
Analysts surveyed by FactSet expect Cisco to report fiscal fourth-quarter adjusted earnings of $1.17 per share, which is above the 99 cents per share the company reported in the same period last year. Revenue for the quarter is expected to come in at $16.8 billion, a 15% increase from the previous year's $14.7 billion.
Cisco's networking segment -- which includes gear used in AI data centers -- has grown as enterprise demand for AI infrastructure continues to rise. Networking revenue is expected to be $9.66 billion in the quarter, compared to last year's $7.63 billion.
The company said when reporting third-quarter earnings in May that it had taken $5.3 billion in AI infrastructure orders from hyperscalers so far in the fiscal year. Cisco then raised its full-year expectations for orders to $9 billion, up from $5 billion. Wall Street will be looking to see if the actual amount came in higher than those estimates.
"Results will most likely exceed the Street, supported by price increases, pull-forwards, end-of-life activity and improved data center orders," Daniel Morgan, senior portfolio manager at Synovus Trust Company, wrote on Aug. 7.
Shares of Cisco have gained 60% this year as demand for the hardware used to power AI climbs. Cisco isn't the only beneficiary of the ongoing trend. Super Micro Computer reported better-than-expected fourth-quarter earnings and gave strong fiscal-year revenue guidance on Tuesday night thanks to strong demand for its server equipment.
Comments